Should I pay buyer's closing costs?

Question

Hello. I have a townhouse in the Los Angeles, CA area for sale and just received an offer for my full asking price $395,000. However, the buyers want me to pay their closing costs (3%) which will take $11,850 from my profit. Is this normal? I've heard of sellers crediting buyers money but $11,850 sounds kind of high. Should I counter offer?

Answer 1

I'm in the Mortgage business.What I usually suggest is the seller increase the purchase price (as long as the home will appraise) either to a price that will wash the amount your giving to the buyer completely out or atleast half or three-quarters of the amount.

In this type of market or really any market you can usually plan on contributing to the closing costs.

Answer 2

Everyone makes money at the closing but the buyers. They shell out cash. Are you paying a broker? Discuss this with your broker, and hold out. Agree to sell them the hose, maybe take a little off the asking price, but don't pay outright without trying to hold on to your money. Call an attorney-I'm sure they will help.

Answer 3

It depends on how hot the market is in your area. How fast are other comps in your area moving? Are there any comps in your complex for sale? If they refuse & walk can you wait for another buyer? What does your agent say?

Lot's of area's have cooled off the the point that this is very common. In my area (chicago) you wouldn't believe some of the deals that are going on in certain areas. Some area's just have too much product (condo's, townhomes, ect) & not enough buyers.

Answer 4

yes,if you want to sell it fast. But near 12K is a lot of money. I'm in mortgage and for a selling price like that, buyers closing costs should be no more than 9K